For the year 2007, the company board of directors declared that they will pay RM50,000 bonuses for their employees. Insurance charges were paid on 1/7/2007 for one year coverage. Provision for warranty was based on 3% of the year sales. The last year provision has not been changed. Provision for doubtful debts was based on 2% of the accounts receivable amount. The last year provision has not been changed as well. Interest charges of 8% per annum for the last quarter of the year have not been recorded. Interest is normally paid in January. Depreciation charges are at 10% per annum on straight line basis. As the Company accountant you are required to: a) Raise the journals for the additional information that are given in the above question. b) Raise the amended trial balance as at 31 December 2007

For the year 2007, the company board of directors declared that they will pay RM50,000 bonuses for their employees. Insurance charges were paid on 1/7/2007 for one year coverage. Provision for warranty was based on 3% of the year sales. The last year provision has not been changed. Provision for doubtful debts was based on 2% of the accounts receivable amount. The last year provision has not been changed as well. Interest charges of 8% per annum for the last quarter of the year have not been recorded. Interest is normally paid in January. Depreciation charges are at 10% per annum on straight line basis. As the Company accountant you are required to: a) Raise the journals for the additional information that are given in the above question. b) Raise the amended trial balance as at 31 December 2007

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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